Shakedown Street

Crosscurrents collide in Cannaland.

Daily Recap

A federal appeals court has ruled that the ban preventing people who use marijuana from possessing firearms is unconstitutional. A three-judge panel agreed to reverse the conviction of a man who was sentenced to nearly four years in prison after being pulled over with firearms and admitting to occasionally using cannabis.

The judges also said that the government’s argument about the ability of Congress to disarm “dangerous” people also misses the mark when applied to the marijuana ban.

“Furthermore, even as the Founders were disarming Catholics and politically disaffected citizens, they left ordinary drunkards unregulated. The government has no meaningful response to the fact that neither Congress nor the states disarmed alcoholics, the group most closely analogous to marihuana users in the 18th and 19th centuries,” the ruling continues. “As with the government’s analogy to mental illness, we must ask: Which are marihuana users more like: British Loyalists during the Revolution? Or repeat alcohol users? The answer is surely the latter.”

On the other side of the world, history was made as the first bill to legalize cannabis nationwide was introduced in the Australian Parliament. “With just a sprinkling of political courage and collaboration mixed with a truckload of common sense,” Greens Senator Shoebridge said, echoing a simple and obvious truth that most people around the world would agree with, “we can make this law and end the war on cannabis.”

Earnings continued to roll across the cannabis space as (what’s left of the) investors digest the reports and various nuances, including the missing money at Trulieve and phantom guidance at Curaleaf. TerrAscend officially reported, providing color on their recent upside pre-, and Canopy Growth fell 9% on the heels of their Q2 report card.

Meanwhile, the technical toggle continues to teeter as the US Cannabis ETF MSOS probes the very same all-time low for the fifth time in five months. Students of the market will tell you that incremental demand will wane with each subsequent retest, which only adds to the August angst as we wade through this sleepy Summer.

[note: we rank recent cannabis earnings reports here + dive in deeper below + remind investors the stock market typically looks about six months forward as a discounting mechanism. If the government doesn’t shut down, that’s a decent window for reform]

In other sector news, three northeast states set monthly cannabis sales records in July; the ex-CFO at Trulieve allegedly expensed more than $350,000 on a company card for personal expenses; ScanSource is suing Dutchie on the left-hand side for almost $25M; NY’s first farmer’s market opens this week; New Hampshire has banned delta-8 THC as they study legalization; Governor Jesse Ventura captured the end of prohibition in Minnesota; more than half of all Americans have at least tried cannabis, with current consumption outpacing cigarettes; Kiva’s coming to Florida on a wing and an AYR; we sniff at the Illinois tax regime, find out what to do if our pet consumes our stash and spy the dramatic efficacious agility for adolescents with Sickle Cell Disease.

All that, and more, just scroll down…

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $41M

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